The Stellar Native Asset, often referred to as Lumens (XLM), is the built-in digital currency of the Stellar network. This asset serves as a bridge that facilitates the transfer of value across the network.
Stellar Native Asset: A Brief History
Stellar was founded in 2014 by Jed McCaleb, a key player in the cryptocurrency world who also co-founded Ripple. The Stellar network was designed to support digital representations of any currency, but it also has its own built-in token, the Lumen. Lumens were initially launched with a supply of 100 billion, but the Stellar community voted to reduce this maximum supply to 50 billion in 2019. This decision was made to maintain the value and integrity of the Stellar Native Asset.
Use Cases of Stellar Native Asset
Stellar Lumens serve two primary functions within the Stellar network. First, they act as a spam deterrent. Each transaction on the Stellar network requires a small fee, paid in Lumens, to prevent users from overwhelming the network with transactions. Second, Lumens facilitate multi-currency transactions. If there is no direct market between two currencies on the Stellar network, Lumens can be used as a bridge. This makes Lumens a crucial component of the Stellar network’s mission to enable fast, low-cost international transactions.
Stellar Native Asset in the Market
As of 2021, Stellar Lumens are among the top 20 cryptocurrencies by market capitalization. This is a testament to the asset’s growing popularity among investors and its increasing adoption as a payment method by businesses. The Stellar network’s focus on cross-border transactions and micro-payments has made it particularly appealing in regions where access to traditional banking services is limited. As a result, the demand for Lumens is expected to grow as the Stellar network expands its reach.
Trends in Stellar Native Asset
One of the key trends in the Stellar Native Asset is its increasing use in decentralized finance (DeFi) applications. DeFi platforms are increasingly leveraging Stellar’s infrastructure to enable fast, low-cost transactions. Additionally, Stellar’s partnership with IBM and its World Wire product, which uses Lumens for cross-border transactions, has further boosted the asset’s visibility and credibility in the market.
Stellar Native Asset on the MEXC Platform
The MEXC platform, a leading digital asset trading platform, supports trading in Stellar Lumens. Users can buy, sell, and trade Lumens against other cryptocurrencies on the platform. This has contributed to the liquidity and accessibility of the Stellar Native Asset, making it more attractive to a wider range of investors.
Conclusion
In conclusion, the Stellar Native Asset is a crucial component of the Stellar network, serving as a bridge for multi-currency transactions and a deterrent against spam. Its growing adoption in the market and increasing use in DeFi applications underscore its potential as a digital asset. As the Stellar network continues to expand and forge partnerships with major corporations, the demand for Lumens is expected to grow, making it a digital asset to watch in the coming years.
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